Electronic payment is a way of buying goods and services without physical money in the form of currency notes. Such payment systems are technologically oriented and widely used nowadays. For electronic payment, you require an e-wallet which is an electronic wallet and connection to the internet network. There are majorly 3 types of electronic payment:
TYPES OF ELECTRONIC PAYMENT
- A one-time customer-to-vendor payment the most common type of payment in the world of e-commerce. People use it when they shop online at an e-commerce site, such as Amazon. You just have to click on the shopping cart icon, give your credit card information and click on the checkout button. The information on your credit card is processed by the site and also sends you an e-mail. Such services notify you about your transactions. The service is provided to both the buyer and the vendor.
- Another type is a recurring customer-to-vendor payment. Such payment is done when you pay a bill through a regularly scheduled direct debit. Such Payment plans are commonly offered by car insurance companies, phone companies, and loan management companies.
- In order to use automatic bank-to-vendor payment, you need a service called online bill pay which is offered by your bank. The payment is done by logging on to your bank’s Web site. Afterward, you have to enter the vendor’s information and this way you authorize your bank to electronically transfer money from your account to pay your bill.